The daily wage earners and poor work on a cash economy. Mobile payments will now enable them to build a credit history, the biggest glitch in providing finance from the organized sector banking. Secondly, opening bank accounts is traditionally a nuisance or not possible at all as migrant works / poor often have no permanent residence. Now, a bank will know physically where its account holder is..if the transaction has to be through a cellphone or an otherwise connected devise. Its utility for wage earners includes logistics.Plumbers and electricians in cities can handle potential customer calls instantly instead of relying on a fixed location phone or a physical presence at market place. Overall a great development. Now, I wonder why this is being held up in India?

The Mobile Phone and through it the Mobile Wallet [essentially M-Pesa] and now the Mobile Internet has proven to be the Silver Bullet and an Entry Ticket for every African to enter the c21st. The Phone has been a Tipping Agent whose effects are still being felt and which is still set to amplify further. Anyone can own a Phone and in that regard it has proven a Grass Roots Stimulus of a wonderful and meritocratic Nature.
The Government is short sighted I feel to be looking to tax Financial Inclusion because the Rate of Financial Inclusion [at Kenya's Per Capita GDP Price Point] is a miraculous thing.
Aly-Khan Satchu
Nairobi

I assume by "rent-seekers" you're referring to the government trying to tax this system? It would be pretty silly to claim that Safaricom, who created such a useful resource for people, is "oppressing" them by providing the service. So long as people are choosing to use the service, it is a net benefit to them, and can't be considered oppression if it net-net good.

@ Erik, yes, the government is planning to put a tax on the system, that was not there before. This is the true picture of the whole system: You get a salary-pay oncome tax, you go to the ATM to draw the money, you pay a tax, you sent your mom or family members some money in the in the vallage-you pay tax for the transfer, your family member(s)goes to get the money out of the M-pesa system-s/he is taxed.......the net amount goes to the grocery store where you again pay VAT. How many taxes are those? Too many!So what Edwardong is saying us that, the ex-chequer will opress the poor, been of the tax overload. Remember this system mainly caters for the unbanked poor.....though it also covers other elite services like payment of bills and bank transfers/services.